The economic trend of deindustrialization and its effects on public school funding are examined in this paper. The first part describes deindustrialization and its causes, such as changing technology and tax laws, a shift toward more centralized and increasingly powerful corporations, the search for favorable business climates, and increased foreign competition. The next part describes Warren, Ohio, as an example of a community that was affected by deindustrialization. Serious economic problems, facilitated by widespread plant closures, negatively impacted the school district's ability to fund education. Ramifications of deindustrialization included less revenue from property tax levies, decreased community and student populations, and high unemployment, which contributed to a lack of community support for public schools. A conclusion is that the issues of school funding and deindustrialization remain closely tied to the growth and decline of American manufacturing. (86 footnotes; 58 references) (LMI)